Digital finance expert on crypto regulation in Armenia: the external picture looks good, but there are problems inside
YEREVAN, September 2. /ARKA/. The law "On crypto assets" that was passed by the Armenian parliament is significant and pertinent from an external perspective - it establishes the operational framework for international stakeholders: exchanges, institutional firms, banks, and trust funds; however, there are internal challenges.
This assertion was made during an interview with the ARKA news agency by Andranik Togramajyan, the head of the digital finance division at the Cilicia business club.
"The banking system in Armenia is conservative, which is beneficial, yet it should adopt a more liberal stance in certain areas. In light of the prevailing trend towards Western standards, I believe it would be more advantageous to model our regulations after those of the UAE, Georgia, and Singapore rather than the European framework, which imposes stricter regulations and complicates the operations of startups," he remarked.
Simultaneously, Togramajyan pointed out that a drawback of the European model is that acquiring licenses necessitates substantial financial investment and resources, along with adherence to numerous regulations.
"Given our cultural context, a significant volume of exchange transactions tends to shift towards the gray and black markets," he added.
In response to the inquiry regarding the measures the government should implement to foster a conducive ecosystem, the expert emphasized that the regulatory body ought to examine the practices of nations with which Armenia engages in substantial trade.
The objective is not to draw in new players - they will arrive on their own - but rather to enhance the existing economic relationships. We do not possess a multi-trillion dollar enterprise with Europe. However, we do engage in significant transactions with the UAE, Iran, and the nations of Eurasia and Asia. Given our limited size, liberal regulation would enable us to attract additional capital and channel these investments through Armenia," he emphasized.
Togramajyan firmly believes that the current regulations are excessively stringent.
"Numerous international players will hesitate before entering our market. The market is limited, and it may become apparent that a license is unnecessary here. Acquiring a license in America and Europe is challenging, yet they boast multi-million dollar markets," the expert remarked.
The Law on Cryptoassets came into effect in Armenia on July 4, 2025. This legislation outlines the guidelines for trading cryptoassets, offering services, and supervising the market. The proposed regulatory frameworks permit only verified and transparent companies to participate in the market, which aims to safeguard the rights of cryptoasset purchasers and bolster confidence in the market.-0-
